The Start to Successful House Flipping
Going Over the Process of Redeveloping Our First Home
Every residential redeveloper has to have their first deal. Some are successful and some flop. Fortunately for us at Green Sun Homes, LLC, our first house flipping project went very well. We want to take a few minutes and let you all know about how this first deal happened, and what we got out of it. We won’t cover every detail, as there is a plethora of things that go into every deal, but we’ll try to make sure that the general scope of what happened is clearly presented. So let’s dive in and see where we started.
Our first residential purchase happened in Tacoma, WA. We looked at 12 other houses is the area before settling on a 4 bed, 2.5 bath on a 1/10 acre lot. Why did we choose this property over the first twelve? Well for starters, this was in an excellent neighborhood that was recently developed. Additionally, this house was for sale for the same price as most of the previous ones we looked at, but in much better condition. The property was purchased for $125,000.
The house was mostly in good condition. It definitely needed cosmetic work, such as new carpet, paint, laminate wood, and fixtures. Unfortunately, as is usually the case, there were a few things that needed unexpected work. This included urine stains on the sub-flooring in the bathrooms, and uneven sub-flooring in the kitchen. Even with these additional tasks, the total rehab work costs only totaled $7,500. We did most of the work ourselves, which is why we were able to keep the rehab costs so low.
Holding Costs: $4,000
Closing Costs: $6,000
HOA Fees: $1000
So, how much were we able to sell it for?We originally posted the house for $190,000.It was on the market for 30 days before we sold it for asking price. So let’s do a little math.
$190,000 – 125,000 = $65,000
$65,000 – $7,500 = $57,500
$57,500 – $12,600 = $44,900
So our total profit for this project was $44,900! We were very proud of the profit we were able to make on our first deal, and we’re looking forward to the projects we work on in the future. If you’d like to join us in making similar profit, please to go to the investor tab on our website www.greensunhomesllc.com, and fill out the form there. If you would prefer, you can call us at 239-494-5164.